But, as part of his tax-increase package, Patrick is also seeking to abolish 44 personal income tax credits, deductions and other breaks which provide crucial savings for tens of thousands of homeowners, people with children, college tuition and medical expenses, according to an analysis by the Massachusetts Taxpayers Foundation

Seeking to raise money for education and transportation, Patrick is asking state legislators to approve a tricky revision of the state's tax code and a big tax increase at the same time.

House Speaker Robert A. DeLeo, a Winthrop Democrat, said he is hearing "grave concerns" from some legislators, business representatives and others, but he said it is too early to say if the House will go along with a tax increase.

"There's a whole lot more to this package than we originally thought," said DeLeo, when asked about the governor's plan to eliminate some common credits and deductions.

Another little-noticed aspect of the bill is that the state taxes on dividends and longterm capital gains, both now 5.25 percent, would also rise in tandem with the income tax to 6.25 percent. To simplify the tax code, the 12 percent short-term capital gains tax would also drop to 6.25 percent.

Gregory R. Mennis, assistant secretary for fiscal policy for Patrick, said, "It is important to look at the tax package as a whole." Overall, the plan is aimed at making the tax code more simple and fair, and to help retirees, working families and the needy, he said.

Robert DeLeoAP Photo/Steven Senne

"We are mindful that everything about this proposal .. is something to be taken very seriously," Mennis added, during an interview with The Republican and MassLive.com in his Statehouse office. "Every individual needs to understand the impacts on them and their families."

Three key features of Patrick's plan would increase the income tax from 5.25 percent to 6.25 percent, double all filers' personal exemptions, or the amount of income not subject to taxation, and lower the sales tax from 6.25 percent to 4.5 percent.

The governor's legislation is intended to eventually raise $1.9 billion a year for transportation and education improvements. The tax package was submitted as part of Patrick's proposed $34.8 billion state budget for the fiscal year starting July 1.

It also includes a section to raise nearly $500 million a year in additional corporate taxes.

Michael J. Widmer, president of the taxpayers foundation, said business leaders and legislators are also starting to understand the effects of wiping out so many credits and deductions.

The effort complicates a tax increase package that could be more simple and straightforward and makes the governor's case more difficult, he said.

"A huge majority of the public probably depends on more than one of these," Widmer said of the deductions and credits. "That's the problem."

Michael WidmerThe Republican photo by Michael S. Gordon

These include a critical exemption from the state's long-term capital gains tax on the profits from the sale of a person's primary home, a rare state deduction from personal income to offset contributions to Social Security and public pensions and another unusual state exemption from taxation on interest from a certain amount of savings in a Massachusetts bank.

Patrick's legislation would also eliminate deductions for people with dependents, or children, less than 12, for college tuition, for adoption fees, certain tolls and MBTA passes and for contributions to a health savings account, which allow workers to contribute pre-tax money to be used for qualified medical expenses.

Under current state law, which is tied to federal law, there is no state or federal long-term capital gains tax on up to $500,000 in profits for people married filing jointly and $250,000 for singles. In order to qualify, sellers need to have lived in the home for at least two out of the past five years.

If someone realizes $100,000 gain on the sale of a longtime home, then the state tax would be $6,250, or 6.25 percent.

If Patrick gets his way, a total of 55,000 filers each year would be hit with the state's long-term capital gains tax on the sale of a primary residence, according to the taxpayers foundation.

Patrick is seeking to eliminate about half of the state's credits and deductions, but he wants to preserve others.

For example, the governor wants to keep an exemption from state taxes on Social Security checks. He also wants to keep intact the earned income tax credit, which is used by low- to moderate-income individuals and families.

Retirees on fixed incomes will generally not see increases in their taxes, and many could see lower taxes because of the decrease in the sales tax and the doubling of personal exemptions, according to Mennis, the governor's assistant secretary for fiscal policy.

About half of households, including most earning less than $60,000 a year, will pay about the same or less in combined sale and income taxes, Mennis said.

Patrick's tax bill would be taken up first in the state House of Representatives.

The House will release its fiscal 2014 budget in April.

DeLeo, the House speaker, said he is meeting with people each day to review the tax plan including business leaders, legislators and others.

While some are leery, people are generally saying they understand the need for improvements in education and transportation, he said.

Asked if it's fair to say the state House of Representatives would compromise with the governor and raise some kind of revenues, DeLeo said, "I'm not going to say that's what we are going to do. Before we do anything, whether it's in transportation or whatever, we have to talk about what further efficiencies that we can gain from what the present situation is ... It's a little premature to say that we will or we won't do anything in terms of taxes."

Patrick's bill would generate $1 billion in new revenues from eliminating the 44 personal income tax credits and deductions.

But, that would be offset by doubling the personal exemptions, which would benefit all taxpayers, not just select groups, Mennis said. The doubling of those exemptions would cost the state about $1 billion in revenues.